European Commission Ends Excessive Deficit Procedure for Romania

The European Commission announced on June 3, 2026, that Romania has satisfactorily met its reform and investment commitments to correct its excessive budget deficit. The Commission concluded that no further steps are currently required under the European Union's Excessive Deficit Procedure, citing effective actions taken by the Romanian government.

Romania achieved this progress through the development of an automated property valuation IT system, reforms to business financing, and the initiation of a new public-sector wage law. However, the Commission recommended that the government continue adhering to expenditure growth rates established on July 8, 2025, and fully implement pending pension reforms.

Brussels urged Romania to address significant VAT and corporate tax gaps, which stand at 30% and 44% respectively, the highest rates in the EU. The Commission also called for increased defense spending, higher quality public administration, and expanded investment in environmental infrastructure and sustainable transport.